All good in theory, but what to do with all those "non" peaceful types? They will always exist! In a sparsly populated world, anarchy would work, but in a densly populated society... never. There will always be a need for rule of law, of some sorts anyway.
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I think it would be accurate to say society needs regulation, I'm just not convinced centralized, monopoly regulation backed by threats of force is the most effective mechanism. We saw with the 2008 financial collapse how utterly terrible that "regulation" works. I won't repeat everything I've already said on this Facebook comment thread, but there are some good book recommendations there if you're curious about how this can work and practical examples like Detroit Threat Management.
I guess the key factor in implementation of the law is "localized" or decentralized like you say. Threats of force is a little harsh, but there should be some deterrence to bad behavior and corruption. A utopian society we will never be. Will check out your recommended reads. Thanks.